Cuts threaten local hospital, state services

Jeremy AlfordCapitol Correspondent

Published: Friday, July 20, 2012 at 11:03 a.m.

Last Modified: Friday, July 20, 2012 at 11:03 a.m.

BATON ROUGE — LSU hospital system officials told lawmakers Thursday there's no plan in place for removing $329 million from the budgets of the medical facilities that serve the state's poor and uninsured.

If equally divided among the 10 state-run hospitals, once widely referred to as charity hospitals, Leonard J. Chabert Medical Center in Houma would be forced to shoulder $32.9 million in immediate reductions.

However, LSU System President William Jenkins gave no indication there any final plans, although he did directly address the “rumor” that such a substantial budget reduction would shutter one or more hospitals.

“We can't close hospitals on our own accord. That is a legislative decision,” he told House members. “As we proceed, obviously, the Legislature has to be involved.”

The budget-writing House Appropriations Committee and the House Health and Welfare Committee called the meeting to receive a briefing on the massive Medicaid cuts, which were handed down by Congress.

“I didn't learn anything new. I didn't hear any urgency. I don't understand how the administration can't see this as what is, a disaster and an emergency,” Rep. Joe Harrison, R-Napoleonville, said after the meeting.

More so than anything else, Harrison said he was “disappointed” that Fred Cerise, director of the LSU health care system, did not participate in the briefing.

Bobby Yarborough, chairman-elect of the LSU board of supervisors, said Cerise would be available to talk to lawmakers Monday during the next scheduled briefing on the Medicaid cuts.

Yarborough also said Cerise is working in concert with the LSU board of supervisors as options are being considered — although there are no final plans.

“It is not an easy task, nor will it be a quick task,” he said. “We are searching for input from sources from throughout the country as we speak. Lots of ideas have come forth. It's premature at these time to go into those.”

State Health and Hospitals Secretary Bruce Greenstein said there are models from around the country that are being explored, like public-private partnerships.

Harrison made a direct plea to Greenstein for a fair process, not one where smaller hospitals would be overshadowed by those in larger cities, like the planned University Medical Center in New Orleans.

“I really don't want this to end up being political,” Harrison said.

In an interview Thursday, Treasurer John Kennedy said he wants to know more about the public-private relationships state health officials are investigating.

“I don't know what that means,” Kennedy said. “I can only think of one example in the state.”

He pointed to a recent project, like Greenstein did during the briefing, where Our Lady of the Lake in Baton Rouge has taken on in-patient services from Earl K. Long Medical Center.

“That hasn't saved us any money yet,” Kennedy said. “It has cost us $40 million to help with the move.”

When the decision was made two years ago, Gov. Bobby Jindal's administration argued it would have cost $480 million to replace Earl K. Long Medical Center.

The public-private initiative in Baton Rouge also saved the medical student training program, which is something the public hospital in Houma hosts as well.

Jenkins said it's another reason state officials are pushing to keep the system afloat.

“In almost all of the hospitals, we have residency training taking place,” he said. “It's not only a moral and ethical commitment, it's a legal commitment to complete their training.”

House Appropriations Chairman Jim Fannin, D-Jonesboro, urged lawmakers to have patience until health officials have exhausted all options.

“Sometimes it takes a little time for people to put some plans together,” Fannin said.

<p>BATON ROUGE — LSU hospital system officials told lawmakers Thursday there's no plan in place for removing $329 million from the budgets of the medical facilities that serve the state's poor and uninsured. </p><p>If equally divided among the 10 state-run hospitals, once widely referred to as charity hospitals, Leonard J. Chabert Medical Center in Houma would be forced to shoulder $32.9 million in immediate reductions.</p><p>However, LSU System President William Jenkins gave no indication there any final plans, although he did directly address the “rumor” that such a substantial budget reduction would shutter one or more hospitals. </p><p>“We can't close hospitals on our own accord. That is a legislative decision,” he told House members. “As we proceed, obviously, the Legislature has to be involved.” </p><p>The budget-writing House Appropriations Committee and the House Health and Welfare Committee called the meeting to receive a briefing on the massive Medicaid cuts, which were handed down by Congress. </p><p>“I didn't learn anything new. I didn't hear any urgency. I don't understand how the administration can't see this as what is, a disaster and an emergency,” Rep. Joe Harrison, R-Napoleonville, said after the meeting. </p><p>More so than anything else, Harrison said he was “disappointed” that Fred Cerise, director of the LSU health care system, did not participate in the briefing.</p><p>Bobby Yarborough, chairman-elect of the LSU board of supervisors, said Cerise would be available to talk to lawmakers Monday during the next scheduled briefing on the Medicaid cuts.</p><p>Yarborough also said Cerise is working in concert with the LSU board of supervisors as options are being considered — although there are no final plans.</p><p>“It is not an easy task, nor will it be a quick task,” he said. “We are searching for input from sources from throughout the country as we speak. Lots of ideas have come forth. It's premature at these time to go into those.”</p><p>State Health and Hospitals Secretary Bruce Greenstein said there are models from around the country that are being explored, like public-private partnerships. </p><p>Harrison made a direct plea to Greenstein for a fair process, not one where smaller hospitals would be overshadowed by those in larger cities, like the planned University Medical Center in New Orleans. </p><p>“I really don't want this to end up being political,” Harrison said. </p><p>In an interview Thursday, Treasurer John Kennedy said he wants to know more about the public-private relationships state health officials are investigating. </p><p>“I don't know what that means,” Kennedy said. “I can only think of one example in the state.” </p><p>He pointed to a recent project, like Greenstein did during the briefing, where Our Lady of the Lake in Baton Rouge has taken on in-patient services from Earl K. Long Medical Center.</p><p>“That hasn't saved us any money yet,” Kennedy said. “It has cost us $40 million to help with the move.” </p><p>When the decision was made two years ago, Gov. Bobby Jindal's administration argued it would have cost $480 million to replace Earl K. Long Medical Center.</p><p>The public-private initiative in Baton Rouge also saved the medical student training program, which is something the public hospital in Houma hosts as well. </p><p>Jenkins said it's another reason state officials are pushing to keep the system afloat.</p><p>“In almost all of the hospitals, we have residency training taking place,” he said. “It's not only a moral and ethical commitment, it's a legal commitment to complete their training.” </p><p>House Appropriations Chairman Jim Fannin, D-Jonesboro, urged lawmakers to have patience until health officials have exhausted all options.</p><p>“Sometimes it takes a little time for people to put some plans together,” Fannin said.</p>